I work in SCADA on water / wastewater systems in the US. With few exceptions, all systems we deal with are completely isolated from the Internet. However, the number of exceptions is increasing these days as more people want to view their plant data in the office and tie into their business systems. This trend means I have a tougher job (as automation engineers know much less about IT security, since we didn't have to before).
And what about the iPhone and iPod?
Are you suggesting that the iPhone and iPod aren't targeted towards the upper part of the market? Sure, they dominate the market, but I can get a "MP3 Player" for $10-20, yet most current iPods are an order of magnitude more. Likewise the iPhone is targeted towards the upper echelon of the market (this argument was easier when it was $600 and not $200, but clearly they are not "racing to the bottom" with that either).
"Ignorance is the soil in which belief in miracles grows." -- Robert G. Ingersoll